Brinks Company (BCO)

Short-term

Turnover ratios

Brinks Company's Inventory turnover ratio has shown fluctuations over the years, with a notable peak of 197.19 for December 31, 2023. This suggests that the company efficiently manages its inventory levels. However, the ratio dropped significantly to 6.66 for March 31, 2024, indicating a potential slowdown in sales compared to the previous period.

The Receivables turnover ratio for Brinks Company is consistently not available for analysis across all the reported periods. This may indicate that the company does not frequently collect its accounts receivable, which could potentially impact its cash flow and liquidity.

The Payables turnover ratio is also not provided for analysis for any of the disclosed periods. Consequently, it is not possible to evaluate how effectively the company pays its suppliers or manages its accounts payable.

In terms of Working capital turnover, Brinks Company has displayed a generally declining trend in its efficiency of utilizing working capital from March 31, 2020, to December 31, 2024. The decreasing trend may suggest inefficiencies in the company's working capital management, implying that the company is generating lower sales revenue relative to its working capital investment.

In conclusion, while Brinks Company exhibits strong inventory turnover at times, the absence of data on receivables and payables turnovers limits a comprehensive evaluation of the company's overall efficiency in managing its assets and liabilities. Additionally, the declining trend in working capital turnover warrants attention to improve operational efficiency and optimize capital utilization.

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Average number of days

Based on the provided data, Brinks Company's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The trend in Days of Inventory on Hand for Brinks Company indicates fluctuation and inconsistency over the years.
- Inventory turnover for Brinks has improved significantly from 2020 to the current 2024.
- There was a substantial decrease in inventory days at the end of 2023 followed by a sharp increase in the first quarter of 2024.
- The company seems to have managed its inventory more efficiently in recent periods, evident from the significant reduction in inventory days.

2. Days of Sales Outstanding (DSO):
- The data shows that Brinks Company has not provided information regarding its Days of Sales Outstanding (DSO) for the period under review.
- Lacking DSO figures makes it challenging to assess the efficiency of Brinks in collecting receivables from its customers.
- Without DSO data, it is difficult to evaluate the company's effectiveness in managing its accounts receivable turnover.

3. Number of Days of Payables:
- Brinks has not disclosed data on the Number of Days of Payables for the given periods.
- The absence of payable days information prevents a comprehensive analysis of how long it takes the company to pay its suppliers.
- Payable days are crucial in understanding Brinks' payment policies and relationships with its suppliers.

Overall, the analysis of Brinks Company's activity ratios suggests that while there have been improvements in inventory turnover, the absence of DSO and payable days data hinders a complete assessment of the company's efficiency in managing its working capital. Further disclosure of key activity ratios would provide a more comprehensive view of Brinks' operational performance and effectiveness in utilization of its resources.

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Long-term

The fixed asset turnover ratio for Brinks Company has shown some fluctuations over the years, ranging from a high of 5.26 in September 2022 to a low of 3.59 in September 2021. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. Generally, a higher fixed asset turnover ratio indicates better efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio, which reflects the company's ability to generate revenue from all its assets, has also fluctuated over time. It ranged from 0.72 in December 2020 to 0.77 in September 2023. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets it owns.

Overall, analyzing both ratios together can provide a more comprehensive view of Brinks Company's operational efficiency and asset utilization. The trend in these ratios over time can help in assessing the company's performance and its ability to generate revenue from its assets.